Websites Shifting From Free to 'Freemium'

LinkedIn, ESPN, Skype and other Web sites, which reeled in users with free content, are now boosting sales by adding features that customers have to pay for. LinkedIn introduced a product last month that helps recruiting agencies scour the networking site for job candidates. In June, ESPN merged its online magazine with its Insider service, which costs $6.95 a month. Skype has added features such as voice mail and calling plans that allow users to dial land-line phones for a monthly fee. The shift reflects a desire by Web site owners to reduce their dependence on online advertising. Instead, they're attracting visitors with free content and then selling them premium services or subscriptions, a model known as "freemium." U.S. consumers will spend $8.55 billion on Web content such as games, music and dating in 2010, up 13 percent from this year, according to Forrester Research.